Tech listings and valuations in focus
Market attention remained fixed on the technology sector following recent debate over whether escalating valuations signal a developing bubble. In Shanghai, shares of Moore Threads — a Beijing-based graphics processing unit producer often dubbed “China’s Nvidia” — surged more than 400% on their first day of trade after the company raised roughly $1.1 billion in an initial public offering.
Japanese conglomerate SoftBank also stayed under the spotlight. The stock jumped nearly 4% in early dealings, extending a three-day rally, before trimming gains to close 1.02% higher. Founder Masayoshi Son earlier this week said he “was crying” over the decision to sell the firm’s entire stake in U.S. chipmaker Nvidia, comments that echoed persistent investor interest in semiconductor assets.
Monetary policy developments
In India, the Nifty 50 rose 0.2% after the Reserve Bank of India cut its policy rate by 25 basis points to 5.25%, a move that matched the consensus forecast of economists polled by Reuters. The central bank’s monetary policy committee voted unanimously for the reduction, with Governor Sanjay Malhotra citing “weakness in some key economic indicators.” Malhotra noted that headline inflation has eased considerably and is projected to be revised lower in the first quarter of 2025.
Expectations of policy decisions also shaped trading sentiment in the United States. Overnight, Wall Street’s major benchmarks posted muted moves as investors looked ahead to next week’s interest-rate announcement from the Federal Reserve. The S&P 500 inched up 0.11% to 6,857.12, the Nasdaq Composite gained 0.22% to 23,505.14, and the Dow Jones Industrial Average slipped 0.07% to 47,850.94.
Bond markets and currency backdrop
The rise in Japanese government bond yields underscored investor expectations that the Bank of Japan may incrementally step away from its long-standing ultra-loose stance. Higher yields can increase borrowing costs for companies, a factor that often weighs on equity valuations, particularly in interest-sensitive sectors.
In currency markets, the Japanese yen hovered near multi-month lows against the U.S. dollar amid the widening rate differential between the two countries. An extended period of yen weakness can benefit Japanese exporters by boosting overseas revenue when converted into local currency, yet it can also raise import costs and complicate policy calculations for Tokyo.
Sector themes
Across the region, resource-linked stocks largely tracked underlying commodity prices, while financials responded to shifting yield curves. Technology shares remained the primary driver of headline moves, especially in markets such as South Korea and Taiwan (which was closed for a public holiday on Friday), where chipmakers hold significant index weightings.
In Hong Kong, selective buying in Chinese internet and electric-vehicle names lifted the Hang Seng Index, although turnover remained below recent averages. On the mainland, the CSI 300’s advance was led by consumer staples and renewable-energy equipment makers, signaling a degree of rotation away from the most crowded artificial-intelligence trades.
Week ahead
Looking forward, investors will monitor the Federal Reserve’s rate decision, slated for release mid-week, for guidance on the U.S. policy path and its implications for global liquidity conditions. Regional attention will also turn to China’s upcoming economic data releases, including industrial output and retail sales, for further clues on the durability of the mainland recovery.
Crédito da imagem: Nikada | E+ | Getty Images
